Identity theft: another day, another scandal at CBA

Barry Lakeman has had a gutful. “I’ve got bone cancer,” says the 59 year old farmer from outback Western Australia. “The chances of pulling through are about 60/40”. Worse, he says, his son is disabled. He has epilepsy and a brain tumor and requires special medical treatment.

On top of all this, Lakeman is a victim of identity theft. Last month, local police called to ask him if he’d lost his gun licence. They had found it, they told him. It displayed his photo but the licence number didn’t match. “It was a forgery … the number at the top of the card was different from the number on my card”.

Lakeman’s banking documents were found in a gutter in Victoria three years ago. Today, an officer from the Commonwealth Bank called him and suggested he or his wife Karen had taken the documents to Victoria themselves; that they’d lost them.

“There were other things,” says Lakeman. “In 2015, a company in Victoria rang me and said, ‘We have finished the canvass for your caravan,’ … I don’t even own a caravan.”

That year, the Carnamah police in WA where the Lakemans now reside, told him they were investigating the identity theft. They were also assisted by Geoff Shannon, the principal of Unhappy Banking, who took the case to the Financial Ombudsman Service (FOS), a bank-funded scheme to resolve customer complaints about banks. Now the Northam police are investigating too.

“It doesn’t look like an isolated incident,” says Shannon. “There are credit cards and so on, identities for sale on the Dark Web and we know people were quietly sacked from BankWest (owned by CBA) in 2014 for selling documents”.

Emails from a BankWest source, obtained by michaelwest.com.au, describe a meeting which took place at the bank’s headquarters in WA on November 14, 2014.

“This week we were all ushered into a meeting and asked to sign confidentially form about what was discussed in the meeting. We were informed nothing in this meeting would be put in writing as they did not want a paper trail,” said the email.

“We were informed in the meeting that a large number of staff had just been sacked due to fraudlulent activity, essentially some were ripping off customers, some were ripping off the bank. As you can imagine this is very hush hush and they would be really pissed off if the media found out.”

Detailed questions were put to Commonwealth Bank about the meeting and claims, contained in the emails, that staff had sold confidential customer documents. The bank declined to respond. The bank also declined to respond to questions about the Lakeman case, saying it did not talk about individual client matters.

This story came hard on the heels of revelations that Medicare details could be purchased on the internet. Whether the BankWest credit cards and Barry Lakeman’s personal documents were stolen by the same people, is uncertain.

But it was just a few days later that the Lakemans were called by the bank and told their documents had been found by the side of the road in Victoria.

“It was November 26, 2014. I was out harvesting and we were waiting for the contractors to come in and the phone went. It was a phone call from the local bank manager,” says Lakeman.

“He told me they had had a phone call from Alexandria in Victoria. We were told ‘All your banking documents, your ABN, your phone number, all your details have been found beside the side of the road”.

“How did they get there?” I asked.
“Have you and your wife been to Victoria?”
“Not for three years.”
“Your wife must have taken them over there and left them there.”

“I went off my head,” said Lakeman. “It’s 4,000k away. We were never told who found them or when. It really hurt us because, when we tried to move and buy a house, there was a black mark against us. It affected our credit rating”.

Lakeman is not happy the bank is still running the line that he and his wife may be responsible for their own identity theft.

The CBA is by no means alone in being vulnerable to the identity theft of its clients. All banks are surely susceptible to the same risks. The broader issue is how they handle it. Mistakes happen, it is cover-ups which are avoidable.

As the government continues to hold fast in the face of rising community calls for a Royal Commission into the banks, it has now emerged that the CBA’s money-laundering scandal appears to have been accompanied by a cover-up.

Bank executives were told about deficiencies in their transations monitoring in 2015 and spent the next two years fobbing off investigations by the Australian Federal Police and AUSTRAC.

CBA has sought to contain or cover up all its scandals. It threatened to pull its advertising from Fairfax Media when the financial services scandal broke; it tried to contain it. It tried to contain Storm Financial Group, Comminsure and then the massive money-laundering scandal which is now afoot – 55,700 breaches.

And now there is identity theft on top. “Why didn’t call they call the fraud squad, or the police?” asks Barry Lakeman?

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